Q4 2024 AES Corp Earnings Call Transcript
Key Points
- The AES Corp (AES) signed 4.4 gigawatts of new power purchase agreements for renewables in 2024, putting them on track to achieve their goal of signing 14 to 17 gigawatts through 2025.
- The company completed the construction or acquisition of 3 gigawatts of renewables and a 670 megawatt combined cycle gas plant in Panama, enhancing the utilization of their existing LNG terminal.
- The AES Corp (AES) achieved a record adjusted EPS of $2.14 in 2024, which is materially above their guidance range.
- In 2025, the company expects over 60% year-over-year growth in their renewables EBITDA, driven by previous growth in their US renewables portfolio.
- The AES Corp (AES) has taken steps to improve their financial position, including reducing parent investment in renewables and streamlining their organization, resulting in expected cost savings of $150 million in 2025, ramping up to over $300 million in 2026.
- The AES Corp (AES) expressed disappointment with their stock price performance, citing policy uncertainties and funding constraints as investor concerns.
- Extreme weather-related events in Colombia and Brazil negatively impacted their 2024 adjusted EBITDA, which was in the lower half of their guidance range.
- The company is delaying the closure or sale of some coal plants due to increased demand, which may affect their commitment to a full exit from coal generation.
- The AES Corp (AES) is facing a time lag between renewables development expenditures and growth in EBITDA, impacting their financials.
- The company has reduced their planned renewables investments by $1.3 billion through 2027, which may affect their long-term growth in gigawatts.
Hello, everyone, and a warm welcome to the AES Corporation fourth quarter and full year 2024 financial review call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)
I will now hand over to Susan Harcourt, Vice President of Investor Relations, to begin. Susan, you may begin.
Thank you, operator. Good morning and welcome to our fourth quarter and full year 2024 financial review call. Our press release, presentation, and related financial information are available on our website at aes.com.
Today, we will be making forward-looking statements. There are many factors that may cause future results to differ materially from these statements which are disclosed in our most recent 10-K and 10-Q filed with the SEC. Reconciliation between GAAP and non-GAAP financial measures can be found on our website along with the presentation.
Joining me this morning are Andrés Gluski, our President and Chief Executive Officer; Steve
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